Senate budget still leaves $200 mil deficit

Like their House colleagues, the state Senate on Wednesday released a supplemental budget proposal that would leave Washington’s operating budget with about a $200 million hole.

The current, two-year budget of about $32 billion ends in June. But declining tax revenue forecasts have left the Legislature, which has already cut billions from the current budget, with about another $600 million to go. The state Senate plan includes $254 million cuts and $140 million in transfers and other changes – leaving roughly $200 million left to address.

What gives? The Senate and the House (click here for details of that proposal) are hopeful that the next revenue forecast in March will show a rebounding economy and more taxes filling state coffers.

Among the differences between the House and Senate plans are in education spending. The Senate doesn’t cut quite so deeply into K-4 class size initiatives, but would go cut more from the higher education budget. For example, the Senate would eliminate the Higher Education Coordinating Board, for a savings of just over $900,000.

Lawmakers still have to address a $4.6 billion deficit in the 2011-13 operating budget.